Pakistan’s Credit Rating Upgrade Possible, S&P Suggests

Asif Iqbal | February 8, 2024 | 12:20 AM IST | Elections 2024, Pakistan News, Politics, World | Follow on Google News

Pakistan’s Credit Rating Upgrade Possible, S&P Suggests.image/Reuters

Pakistan’s Credit Rating Upgrade Possible, S&P Suggests

After Elections
S&P Global Ratings, a leading credit rating agency, has indicated the potential for an upgrade in Pakistan’s credit rating following the anticipated transition of power after the February 8 general elections, as reported by ARY News. The agency’s recent report highlighted that Pakistan’s trajectory towards securing improved credit ratings hinges on the formation of a new government committed to implementing robust reforms.

According to Bloomberg, S&P emphasized that a government enjoying widespread public support and capable of collaborating effectively with key institutions stands a better chance of accessing financing from international bodies such as the International Monetary Fund (IMF). S&P analysts, including Kim Eng Tan, underscored the significance of new policy initiatives aimed at bolstering investor confidence and curbing inflation, which could potentially enhance fiscal and external indicators sufficiently to warrant an upward revision in sovereign ratings.

Presently, Pakistan holds a ‘CCC+’ rating by S&P, indicating a level of capacity to repay foreign debt punctually but also acknowledging a degree of uncertainty that could impede future repayment obligations. To ascend to the ‘B’ rating category, the nation must demonstrate substantial progress in securing the next IMF loan program, succeeding the ongoing $3 billion program slated for completion in March 2024.

The termination of the IMF’s short-term nine-month program in March 2024 coincides with the assumption of power by the new government, presenting an opportune moment to unveil its economic roadmap. S&P will closely monitor the government’s actions in this regard, emphasizing the importance of sustained fiscal discipline and structural reforms to enhance economic stability and resilience.

In recent years, Pakistan has experienced downgrades in its credit ratings across various agencies due to protracted political and economic challenges. However, the upcoming general elections signal a potential turning point, offering an opportunity for renewed momentum and economic revitalization.

As the nation gears up for the elections, which are poised to engage over 128 million voters, the Election Commission of Pakistan has provided detailed statistics regarding candidate participation and voter registration across the country’s provinces. With a diverse array of candidates vying for National Assembly and provincial assembly seats, the electoral process underscores the vibrancy of Pakistan’s democratic landscape.

Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.